Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company 46,000 Rets per year. Costs associated with this level of production and sales are given below Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost 368,000 138,000 Unit $15 5 Total 690,000 3 5 2 6 $.39 230,0 92,000 276,000 $ 1,794,000 The Rets normally sell for $44 each. Fixed manufacturing overhead is $230,000 per year within the range c Rets per year. Required: 1 Assume that due to a recession. Polaski Company expects to sell only 38,000 Rets through regular chann chain has offered to purchase 8,000 Rets if Polaski is willing to accept a 16% discount off the regular price. commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski Comm purchase a special machine to engrave the retail chain's name on the 8,000 units. This machine would cost has no assurance that the retail chain will purchase additional units in the future. What is the financial advar accepting the special order? (Round your intermediate calculations to 2 decimal places.) 2. Refer to the original data. Assume again that Polaski Company expects to sell only 38,000 Rets through The US Army would like to make a one-time-only purchase of 8.000 Rets. The Army would reimburse Pola and fixed production costs assigned to the units by the company's absorption costing system, plus it would $1.40 per unit. Because the army would pick up the Rets with its own trucks, there would be no variable sel